Go AZ Motorcycles' expansion will create mall

by Jane Larson - Jul. 15, 2010 12:00 AMArizona Business Gazette

Construction will start soon on two showroom buildings designed to create a "motorcycle mall" at Go AZ Motorcycles in Scottsdale Airpark.

The buildings will flank Honda Powersports of Scottsdale, Go AZ's motorcycle dealership at 15500 N. Hayden Road. When the $3.5 million project is finished in February, Go AZ Motorcycles Mall will house multiple brands of motorcycles. An outdoor plaza with canopies and a rushing-water fountain will host gatherings and special events.

"We want to deliver not only motorcycles but the lifestyle, camaraderie and adventure," Go AZ founder Bob Parsons said. The expansion will add a 9,200-square-foot showroom, 7,900-square-foot showroom and 2,000-square-foot storage building to the property. The Honda Powersports building will be expanded by 1,200 square feet of display space, to 9,341 square feet.

Go AZ also plans to expand its workforce from 50 to nearly 100 employees, Parsons said.

Parsons, a motorcycle enthusiast, also is chief executive officer of domain-name registrar Go Daddy Group Inc., which is headquartered nearby in the Scottsdale Airpark area.

General contractor Hardison/Downey Construction Inc. of Phoenix expects to use as many as 25 subcontractors for work ranging from earthmoving to roofing. The Go AZ project is "a nice boost" in a slow construction economy, vice president Pat Downey said.

Go AZ also has a store at 15750 N. Northsight Blvd. that opened last summer with motorcycles and gear from BMW, Ducati and Triumph and scooters from Vespa.

The Northsight Boulevard store will remainand complement new brands that would be added to the motorcycle mall, Parsons said.

The Northsight store added KTM, Husqvarna and Aprilia since opening. Go AZ chief financial officer Steve Gabbay said the company has acquired a franchise for Kawasaki.

Scottsdale Mayor Jim Lane said the motorcycle mall would bring jobs, regenerate the economy and enhance Scottsdale as a destination for motorcyclists. The Go AZ stores sit south and west of Hacienda Harley-Davidson, a destination store for riders of that iconic brand.

"It's almost a two-wheeled, mini-Motor Mile," Lane said of the area.

The motorcycle-mall concept is a bright spot in a stretch of Hayden Road commercial space peppered with "for lease" and "for sale" signs.

Parsons, who formed Go AZ in 2008 and began acquiring motorcycle franchises, said his dealerships now rank first or second in sales in the region.

He said that "it is a difficult time to be in this business" because a lot of financing for big purchases has dried up. Go AZ has countered by opening new channels of credit, paying higher prices for trade-ins and keeping prices down, he said.